moving money

[4thdi 0]

Hi there,

This is my first post here. I wonder if anyone could let me know how long a window I have to move my savings from a Canadian bank account to my US account.

I mean without my Canadian savings becoming US income and taxable. I heard a year, but cannot find any official documents about it. I only have a few days left for the year. I entered US on a K1 visa.

Thank you in advance for your help!

4thdi

[Naes 12,205]

5 hours ago, 4thdi said:

Hi there,

This is my first post here. I wonder if anyone could let me know how long a window I have to move my savings from a Canadian bank account to my US account.

I mean without my Canadian savings becoming US income and taxable. I heard a year, but cannot find any official documents about it. I only have a few days left for the year. I entered US on a K1 visa.

Thank you in advance for your help!

4thdi

Bump!

 

There are quite a lot people asking for info in this.. me included  

[dentsflogged 352]

I could be totally off-base in my understanding, but everything I've read indicates that any income after the day you get your green card and become a LPR is taxable in the US, but anything you have before that is still yours no matter what?

 

That said, I really need to talk to a professional about it, as I've got a decent chunk (not retirement money, but we can buy a house and have some a nest egg) coming to me from my dad's estate and I already have to pay tax on it in Australia, it'll SUCK if I end up having to pay tax on it in the US, too. 

[payxibka 10,045]

14 hours ago, 4thdi said:

Hi there,

This is my first post here. I wonder if anyone could let me know how long a window I have to move my savings from a Canadian bank account to my US account.

I mean without my Canadian savings becoming US income and taxable. I heard a year, but cannot find any official documents about it. I only have a few days left for the year. I entered US on a K1 visa.

Thank you in advance for your help!

4thdi

Previously taxed income never becomes taxable again by the US.  I transferred  tens of thousands of dollars here from a foreign country that was not taxed.  I don't even know how the US would know about it or even where to put it on the 1040 Form

[Limey 551]

As I recall when I did my first tax return it asked about any money above a certain amount that I'd had at any point during the preceding year in overseas accounts. I had to fill in some separate forms to declare these accounts. I had substantial funds in the UK, which I later transferred to the US after getting married so declared that money. My memory is a bit patchy, but I think I had to explain why I had those accounts, and I outlined that I was British, and had the funds their prior to moving to the USA. Never had any follow up from the Feds etc about it, so I assume they understood the situation.

[Ontarkie 14,227]

~~Moved to Taxes & Finances, from K1 P&P~~

[Italian_in_NYC 259]

There is no tax on savings.

Any interest (or any other financial income like dividends, capital gains, etc) you earn is taxable, whether the money is in the US or Canada (or anywhere else).

If you want to avoid any information reporting (such as FBARs, 8938s, etc) you might want to close the account before you become a US person for tax purposes, but you don't have to.

[Chris Duffy 1,257]

You don't have to transfer your money to a US Account, No rules for that

[SusieQQQ 11,586]

On 12/15/2017 at 11:49 AM, Limey said:

As I recall when I did my first tax return it asked about any money above a certain amount that I'd had at any point during the preceding year in overseas accounts. I had to fill in some separate forms to declare these accounts. I had substantial funds in the UK, which I later transferred to the US after getting married so declared that money. My memory is a bit patchy, but I think I had to explain why I had those accounts, and I outlined that I was British, and had the funds their prior to moving to the USA. Never had any follow up from the Feds etc about it, so I assume they understood the situation.

FBAR forms don’t require any explanation, just the bank account details (type of account, bank address, balance, whether opened or closed during the year). It’s a bit of admin but not much extra hassle. I believe it’s mainly for the IRS to be able to reconcile your declared income with your assets. I also had some substantial movements in my accounts the year I physically moved, and never had any follow up questions from anyone in authority. (If you had to explain, it may have been a bank questionnaire to ensure no money laundering was taking place, rather than to anyone in government).

 

OP, as above, you don’t have to move the funds over, but as a green card holder all your income (including on savings accounts if they are interest earning) must be declared no matter where it is from. 

Edited January 1, 2018 by SusieQQQ